As of October 1st, the extension of the graduated subsidy for electricity will end for the billed month of November 2024 and onwards, along with the continuation of the zero VAT rate on basic goods, as announced by the Ministry of Finance.

In its announcement today, the Ministry of Finance reminded that these measures were approved by the Council of Ministers "to offset the cost of living for households, through the implementation of targeted measures, taking into account the fiscal conditions and challenges, as part of addressing inflationary pressures and supporting affected incomes."

The graduated subsidy measure for the charging price of electricity consumption will apply for the billed months from July 2024 to October 2024, while the zero VAT rate on basic goods (such as deliveries of bread, milk, eggs, baby food, hygiene products for women, diapers, adult diapers, sugar, coffee, meat, and vegetables) will remain in effect until September 30, 2024.

According to the Ministry of Finance, the total cost of these measures (reduction of excise taxes on fuels, graduated electricity subsidy, and application of zero VAT) from March 2023 until October 2024 is expected to reach approximately €201 million.

However, the Ministry noted that inflation has significantly decreased and is expected to stabilize at 2%, electricity prices are showing declining trends, fuel prices have decreased significantly, and state intervention in energy prices for long periods should be avoided, as it does not promote energy conservation and does not significantly impact both the demand and consumption of electricity.

It also emphasized that various allowances and pensions are fully adjusted based on the rate of increase of the Automatic Price Adjustment (ΑΤΑ), covering any price increases, and that price increases are significantly compensated through the implementation of ΑΤΑ on wages.

"Based on the current situation, the reasons for which the above measures were implemented no longer exist. Therefore, both the extension of the graduated electricity subsidy from the billed month of November 2024 onwards and the continuation of the zero VAT rate on basic goods from October 1, 2024, will be terminated," concluded the Ministry of Finance.

Additionally, in a statement, the Tax Department informed that following the decision to terminate the zero VAT rate on the delivery of basic goods, which was in effect until September 30, 2024, the VAT rates that were in effect prior to the issuance of the relevant decrees will be applied from October 1, 2024.